1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
bezimeni [28]
3 years ago
6

Sharon and Amy are roommates. They spend most of their time studying (of course), but they leave some time for their favorite ac

tivities: making pizza and brewing root beer. Sharon takes 4 hours to brew a gallon of root beer and 2 hours to make a pizza. Amy takes 6 hours to brew a gallon of root beer and 4 hours to make a pizza.
a. What is each roommate’s opportunity cost of making a pizza? Who has the absolute advantage in making pizza? Who has the comparative advantage in making pizza?
b. If Sharon and Amy trade foods with each other, who will trade away pizza in exchange for root beer?
c. The price of pizza can be expressed in terms of gallons of root beer. What is the highest price at which pizza can be traded that would make both roommates better off? What is the lowest price? Explain.
Business
1 answer:
Ratling [72]3 years ago
3 0

Answer:

Explanation:

:

Sharon and Amy are roommates. They spend most of their time studying (of course), but they leave some time for their favorite activities: making pizza and brewing root beer. Sharon takes 4 hours to brew a gallon of root beer and 2 hours to make a pizza. Amy takes 6 hours to brew a gallon of root beer and 4 hours to make a pizza.  

a. What is each roommate’s opportunity cost of making a pizza?

Each room mates opportunity cost of making pizza is the beer they would have made with the time spent on making pizza which is

Sharon = 2/4 gallon of beer or 0.5 gallon of beer

Amy = 4/6 gallon of beer or 0.67 gallon of beer

Who has the absolute advantage in making pizza?  

Sharon arguably has absolute advantage because she has comparative advantage in producing both items because she spends less time producing both however she spends half the time of Amy in producing Pizza in particular

Who has the comparative advantage in making pizza?  

Sharon because she spends half the time of Amy in producing Pizza  

b. If Sharon and Amy trade foods with each other, who will trade away pizza in exchange for root beer? Amy will trade pizza for root beer because she has a greater disadvantage in Pizza production in relation to root beer when compared to Sharon. She spends double the time of Sharon in making Pizza but less than double the time of Sharon in making root beer

c. The price of pizza can be expressed in terms of gallons of root beer.  

Sharon = 2 hours/4 hours gallon of beer or 0.5 gallon of beer per pizza

Amy = 4 hours/6 hours gallon of beer or 0.67 gallon of beer per pizza

What is the highest price at which pizza can be traded that would make both roommates better off?  

That price should be lower than Amy's cost but higher than Sharon's cost, so they can both make profits. = (0.5+0.67)/2 = 0.585 gallon of root beer

What is the lowest price? Explain.

The lowest price will be the opportunity cost of Sharon which is 0.5 gallon of root beer because if the price is lower it becomes a loss to Sharon

You might be interested in
A tariff or quota will _____ prices and _____ the consumption of the protected goods in the importing country.
Vadim26 [7]
Raise;decrease is the answer to this question
3 0
3 years ago
Read 2 more answers
Suppose the customer data analysis software used by ABC Bank is significantly changed, and its documentation is therefore revise
viva [34]

Based on the information given this type of maintenance is called a maintenance release.

A maintenance release is a release which help to make correction on security issues such as threat  or vulnerability without modifying or adding new features to the software.

Maintenance release help to fix or repair programming errors that  occur during the software life cycle stage or programming error that occur due to mistake during the requirement stage validating process.

Software that are released often undergo a maintenance release so as  detect and fix any error or bug that was detected.

Inconclusion this type of maintenance is called a maintenance release.

Learn more about maintenance release here:brainly.com/question/13860230

6 0
2 years ago
During the 1920s, more people began to acquire shares of stock using
oksian1 [2.3K]

Answer:

Wait in line before trading

Explanation:

1920s stock brokerages. When a normal person wanted to buy or sell shares, they had to run to the next broker and sometimes wait in line before making their trade.

7 0
2 years ago
Read 2 more answers
What is price discrimination and how do movie theaters and restaurants practice price discrimination?​
marishachu [46]
Price discrimination is the action of selling the same product at different prices to different buyers, in order to maximize sales and profits. Movie theaters practice it by giving discounts on certain night. Example: senior citizens discount. Restaurants practice price discrimination by menu pricing.
7 0
3 years ago
Thrift rents a compact car for $33 per day, and General rents a similar car for $20 per day plus an initial fee of $65. For how
Lyrx [107]

Answer:

The Correct answer would be, When Days will be greater than 5

Explanation:

There are two companies who give cars on rent.

Thrift rents a car for $33 per day

i-e

T=$33D

General rents the car for $20

i-e

G=$20D

and general charges an initial fee of $65

So  

G=$20 + $65

So according to question, for how many days it would be cheaper to rent from General.

So when charges by general are less than charges by thrift, as shown below:

65+20D < 33D

65 < 33D-20D

65 < 13D

D > 5

So the answer would be 5 Days.

7 0
3 years ago
Other questions:
  • Starling Company purchased machinery at the beginning of Year 1 at a cost of $86,100. The machinery has an estimated life of fiv
    8·1 answer
  • Events that occur after the December 31, 2021 balance sheet date, but before the balance sheet is issued, and provide additional
    6·1 answer
  • Martin Enterprises needs someone to supply it with 118,000 cartons of machine screws per year to support its manufacturing needs
    12·1 answer
  • It is important to identify and use only incremental cash flows in capital investment decisions:A) because they are the simplest
    9·1 answer
  • Izzy Division of Marine Boats Corporation had the following results last year (in thousands). Sales $4,700,000​ Operating income
    6·1 answer
  • The following information is available for a company’s maintenance cost over the last seven months.
    5·1 answer
  • Companies choose to Vertically Integrate for all of the following reasons, except____________.a. The company can perform the pro
    6·1 answer
  • Anna wants to take seven days off from her job as an accountant to observe a religious holy week. Her employer is reluctant to a
    5·1 answer
  • Accounts receivable are shown as<br>in the AR customer file.​
    6·1 answer
  • What word does this caution,lookout,danger<br> is the signal word used for more sever hazards.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!